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CLIMATE CHANGE [Mitigation and Adaptation] Through Economic Prespectives In Korea-PRC-Japan DEANISSA RATIH MOHD. ABI RAFDI 21040110120060 21040111130028 MOH. MIQDAM SHIDQI ROLAND 21040110120045 21040111130038
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A Summary of Economics of Climate Change in East Asia

May 28, 2015

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The importance of the East Asian region in terms of addressing the impact of climate change has significant consequences that cross regional boundaries and affect the world. East Asia is a uniquely important region for climate change. As an export-oriented industrial powerhouse, the region accounts for roughly 30% of the world’s total energy-related emissions. This suggests that initiatives to mitigate climate change must include the region. From a country perspective, the region is vulnerable to the impact of climate change.
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Several important messages emerge from the study.
- First, the cost of climate change adaptation is outweighed by the cost of inaction.
- Second, there are different policy actions that each country could undertake. These include, country-specific climate-proofing of various types of infrastructure, addressing the current adaptation deficit to weather risk (especially in the PRC), and avoiding large investments in greenhouse gas-intensive power plants in the PRC and Mongolia.
- Third, adaptation and mitigation policies should not be examined in isolation. Climate change strategies must consider the combined effects of mitigation and planned adaptation, and the resulting damage costs of climate change under the various adaptation policies.
- Fourth, climate change not only brings challenges to East Asia, but also opportunities. A significant portion of the mitigation potential in the region, including energy efficiency measures, generates a positive economic return without consideration of climate change.
- Fifth, regional cooperation, as this study shows, pays dividends. The overall cost of reducing emissions could be decreased by 25% or more if the countries in the region pool their emissions targets and create a regional carbon market.
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Page 1: A Summary of Economics of Climate Change in East Asia

CLIMATE CHANGE [Mitigation and Adaptation]

Through Economic Prespectives

In Korea-PRC-Japan

DEANISSA RATIHMOHD. ABI RAFDI

2104011012006021040111130028

MOH. MIQDAM SHIDQIROLAND

2104011012004521040111130038

Page 2: A Summary of Economics of Climate Change in East Asia

OUTLINE• ADAPTATION : INFRASTRUCTURE• ADAPTATION : COASTAL AREA• ADAPTATION : AGRICULTURAL SECTOR•MITIGATION• GOVERNMENT INNITIATIVES

Page 3: A Summary of Economics of Climate Change in East Asia

Economics of Climate Change in East Asia: Chapter ADAPTATION

INFRASTRUCTURE

Page 4: A Summary of Economics of Climate Change in East Asia

Total Cost of Climate-proofing (ex-ante adaptation)All infrastructure during 2011-2050

Minimum Maximum0

10000

20000

30000

40000

50000

60000

70000

$8 billion

$63 billion

$3 billion

$44 billion

$ 50 million $560 million

East Asia PRC Mongolia

2.30%

97.70%

Mongolia2.20%

97.80%

Japan0.60%

99.40%

PRCRelative Cost of Adaptation

*the cost vary greatly across climate

scenarios

*worst climate change scenario in Mongolia is up to 8.5% of

baseline expenditure

Page 5: A Summary of Economics of Climate Change in East Asia

CLIMATE PROOFING ADAPTATI

ON

It is economic to climate proof roads but the benefits of ex-ante adaptation

for other categories of

infrastructure DO NOT OUTWEIGH the costs incurred.

0%

2%

4%

6%

8%

10%

12%

AverageScenario

8%

Worst CaseScenario

12%

*Roads have the highest relative cost of climate proofing

-CHINA-

Page 6: A Summary of Economics of Climate Change in East Asia

CLIMATE PROOFING ADAPTATIONAdaptation against

cyclones

9.3% Japan

Affected

unaffected

3.8% Korea

Affectedunaffected

*proportion of cyclones-affected-population, more than 1% of local GDP

“ Dampak (biaya) perubahan iklim yang terjadi jauh lebih besar dibanding dengan biaya untuk

meningkatkan dan mangadopsi desain standar yang

tahan bencana”JAPAN: Biaya mengadopsi desain

standar untuk perlindungan terhadap kemungkinan bencana

setiap 100 tahun sekali hanya memerlukan 2.5 milyar US dollar per

tahun (selama periode 2050)

CHINA: Biaya menangani kerusakan akibat topan

(cyclones) mencapai 21 milyar dollar US per tahun dan biaya

tambahan untuk adaptasi terhadap perubahan iklim

sebesar 4 milyar dollar US per tahun .

Page 7: A Summary of Economics of Climate Change in East Asia

• AVERAGE SCENARIO

CLIMATE PROOFING ADAPTATION

Adaptation against (short-term)

Floodingin China

• WORST SCENARIO

South

east

R

egio

nEast

ern

R

egio

nO

vera

ll

The average losses due to CC by 2050 is Modest

2% of the population may suffer an increase in economic losses from short term flooding

around 0.5% of local GDP

The risks associated with cumulative flooding in the PRC

(China), especially in the Yangtze River Basin, may

increase substantially under small number of climate scenarios

The impact of Climate Change

would be very small if a consistent level of protection

against 1-in-50-years floods

were adopted

8% of the population may suffer an increase in economic losses from short term flooding

around 0.5% of local GDP

More than 80% of the

population may suffer an increase in economic losses

from cumulative flooding more than 1% of local GDPMost at risk province –– Anhui,

Henan, Hubei and Hunan

More than 80% of the

population may suffer an increase in economic losses

from cumulative flooding more than 1% of local GDP

Page 8: A Summary of Economics of Climate Change in East Asia

FLOOD PROOFING STANDARD DESIGNSAMPLE

Page 9: A Summary of Economics of Climate Change in East Asia

Economics of Climate Change in East Asia: Chapter ADAPTATION

COASTAL AREA

Page 10: A Summary of Economics of Climate Change in East Asia

During 2010-2050(without adaptation)

*Kondisi ini penyebab utamanya adalah

perubahan iklim, tetapi terdapat pula pengaruh

faktor lain seperti abrasi dan

erosi

• China

• Japan

• Korea

±27 km2/tahun (hilang – terendam)

19-22% wilayah pesisir hilang

500ribu penduduk bermigrasi

86 milyar dollar US –– kerugian ekonomi akibat migrasi

±3.3 km2/tahun (hilang terkena erosi)

28% wilayah pesisir hilang

54ribu penduduk bermigrasi

± 7 milyar dollar US –– kerugian ekonomi akibat migrasi

19-22% wilayah pesisir hilang

• Biaya Adaptasi Pesisir

Page 11: A Summary of Economics of Climate Change in East Asia

5

41• Adaptasi wil. pesisir

(termasuk sea nourishment dan sea

dikes) mengurai kerugian akibat sea-

level rise hingga 99%

32

• Skenario terburuk sea-level rise

dengan tornado hanya merugikan $247 juta/tahun

Biaya adaptasi pesisir (medium scenario)

$4.1 milyar. PRC sebesar $2.1 milyar

dan Japan sebesar $1.2 milyar (per

tahun).

Adaptasi wil. Pesisir didominasi pembuatan sea dikes yg biaya

perawatan meningkat tiap tahun

Upgrading pelabuhan di Asia Timur sekitar $400

juta/tahun (dengan 77% pelabuhan di PRC)

• Biaya tambahan utk adaptasi perubahan iklim

di Asia Timur adalah $2.7 milyar untuk 2010-2050.

• Jumlah ini berada di bawah perkiraan rata-rata

(medium scenario) sekitar $1.2 milyar - $6.8

milyar/tahun

Tanpa mempertimbangkan

Perubahan Iklim, biaya adaptasi wilayah pesisir

dari abrasi hanya sekitar $1 milyar /tahun

Page 12: A Summary of Economics of Climate Change in East Asia

ADAPTASI WILAYAH PESISIR TERHADAP PERUBAHAN IKLIM MERUPAKAN INVESTASI YANG

SANGAT BAIK DAN SANGAT EFEKTIF

The ratio of the damage avoided by adaptation to climate change to the incremental cost of adaptation is 5.0 for the

medium scenario and at least 4.6 over all scenarios

Page 13: A Summary of Economics of Climate Change in East Asia

Economics of Climate Change in East Asia: Chapter ADAPTATION

AGRICULTURAL SECTOR

Page 14: A Summary of Economics of Climate Change in East Asia

Hasil Panen2010-2050

DRIER SCENARIO

2010

2050Japan

KoreaPRC

JapanKoreaPRC

–10%

Pada skenario terburuk, PRC akan mengalami penurunan sebesar 10%. Korea dan Japan justru mengalami kenaikan hasil panen yang diperoleh.

PRC: Rata-rata perubahan terhadap hasil panen padi berkisar antara 5.6% hingga 4.3% dengan mempertimbangkan skenario-skenario yg ada

PRC: Pada skenario tanpa perubahan iklim (no-climate-change scenario), produksi hasil panen total diproyeksikan berkurang 1%-4% pada 2050.

Page 15: A Summary of Economics of Climate Change in East Asia

Crops Price & Wheat Production2050 (prediction)

Mongolia -PRC -

Harga hasil panen

0%

5%

10%

15%

20%

25%

30%

35%

40%

naik 6%

naik 38%

MongoliaPRC

Wheat Produc-tion

-25%

-20%

-15%

-10%

-5%

0%

-24%

-8%

Drier

*in PRC

Wheat/gandum adalah jenis hasil panen yang terkena dampak paling parah oleh Perubahan Iklim.Mongolia adalah negara dengan bahan makanan pokok berupa gandum. Perubahan Iklim berdampak pada berkurangnya hasil panen wheat/gandum secara signifikan, sehingga harga bahan makanan pokok (gandum) di negara tersebut diprediksi meningkat tajam pada tahun 2050.Diperkirakan akan terjadi pengurangan konsumsi kalori di tahun 2050 rata-rata hampir 200 kalori/hari (sekitar 8% dari keseluruhan konsumsi Mongolia)

Page 16: A Summary of Economics of Climate Change in East Asia

BIAYA ADAPTASI SEKTOR PERTANIAN DIPENGARUHI OLEH PERTUMBUHAN DAN KEMAJUAN TEKNOLOGI DI

BIDANG PERTANIAN The cost of adaptation in 2050 for East Asia under the worst

climate scenario varies from $10 billion to $33 billion depending upon the growth in agricultural yields due to technical progress. The highest cost would be incurred if

there was no technical progress, whereas a continuation of historical trends of yield growth would reduce the cost of

adaptation by nearly 70%.

Page 17: A Summary of Economics of Climate Change in East Asia

Economics of Climate Change in East Asia: Chapter MITIGATION

ECONOMIC PRESPECTIVES

Page 18: A Summary of Economics of Climate Change in East Asia

Potensi Pengurangan Emisi

PRC – ASIA TIMUR

Potensi pengu-rangan emisi di

Asia Timur

0

1

2

3

4

5

6

7

8

9

10

5.3 gtCO2E

9.7 gtCO2E

20202030

Potensi pengu-rangan emisi di

PRC

0

1

2

3

4

5

6

7

8

9

4.7

8.8

20202030

8.73

0.970000000000001

Potensi Pengurangan Emisi di Asia Timur 2030

PRCOthers

Page 19: A Summary of Economics of Climate Change in East Asia

Penundaan 5 tahun dalam penerapan opsi pengurangan di sektor tenaga listrik di RRC mengurangi potensi pengurangan hingga 15 % pada 2030 . Ini " lock-in " efek terjadi karena pembangunan selama periode ini dari pembangkit listrik

menggunakan teknologi yang kurang efisien dan memiliki emisi yang lebih tinggi membatasi pengurangan masa depan selama kehidupan mereka tanaman.

Upaya mitigasi di RRC akan mengurangi ketergantungan pada impor batubara dan minyak tetapi akan meningkatkan ketergantungan pada impor gas . Dengan

perbandingan dengan skenario bisnis seperti biasa - bisnis , abatement dengan plafon sebesar $ 100 per tCO2e akan meningkatkan porsi gas dalam konsumsi

energi primer pada tahun 2030 dari 2% menjadi 25 % diimbangi oleh penurunan pangsa batubara dari 57 % menjadi 43 % dan minyak dari 18% menjadi 10 % .

Sebuah pasar karbon daerah akan biaya- efektif di Asia Timur . RRC memiliki banyak opsi pengurangan lebih murah daripada Jepang atau Korea Selatan . Potensi pengurangan di RRC dengan biaya antara $ 0 dan $ 100 per tCO2e dengan

tingkat diskon yang tinggi adalah sekitar 19 kali potensi setara untuk Jepang dan Republik Korea dikombinasikan pada tahun 2030 , sehingga ruang lingkup untuk

perdagangan efisien besar .

Mitigation has large co-benefits in the PRC, particularly in the form of reduced health costs

from air pollution.

Page 20: A Summary of Economics of Climate Change in East Asia

Economics of Climate Change in East Asia: Chapter Governmental Innitiatives

GOVERNMENT INNITIATIVES

Page 21: A Summary of Economics of Climate Change in East Asia

Peningkatan kesadaran untuk rumah tangga dan menyediakan mereka dengan informasi tentang bagaimana mengembangkan gaya hidup rendah karbon

Mengadopsi ramah lingkungan pangan Mengurangi konsumsi energi dan air

THE LOW–CARBON GREEN LIFESTYLE ACTION PLAN (SINCE

August 2009)AIM: Reduce 10% of lifestyle-related greenhouse gas emissions and help

create a low–carbon lifestyle.

GOVERNMENTAL SUPPORT: individu warga dan kelompok sipil didorong untuk melakukan tindakan rendah karbon melalui insentif seperti poin

karbon, dengan event sebagai berikut:

Kontes Mengemudi Ramah Lingkungan (Eco-Friendly Driving Contest)

Mendorong Penggunaan Angkutan Umum

Mengkampanyekan Kebiasaan Berjalan untuk mempromosikan konsep transportasi ramah lingkungan (Promote concept of Eco-Friendly transportation)

Page 22: A Summary of Economics of Climate Change in East Asia

SUPPORT FROM GOVERNMENTas supporting system of green lifestyle

program in Korea

50.000 "GREEN

LEADERS" akan dilatih pada tahun

2015

Mendorong Penciptaan GREEN

CAMPUS dan

GREEN SCHOOL

2008

OktoberGREEN START NATIONAL

NETWORK dibentuk untuk mempromosikan green growth melalui partisipasi

masyarakat

2010

JuniAROUND 37 GROUPS HAS

JOINED (including the Korean Chamber of Commerce

and Industry; Presidential Commission on Sustainable Development; and Korea Federation of Teacher Associations)

Page 23: A Summary of Economics of Climate Change in East Asia

The Green Start movement also encompasses the “WE Green” (or

Women’s Green) movement and the “Green Energy Family” movement

Page 24: A Summary of Economics of Climate Change in East Asia

This Presentation is made of several

chapters taken from Economics of Climate Change in

East AsiaChapter 2: The Economics of

Adaptation in the Infrastructure Sector Chapter 3: The Economics

of Adaptation in the Coastal SectorChapter 4: The Economics of

Adaptation in the Agriculture SectorChapter 6: Greenhouse Gas

Projections and the Costs of Sector-Specific

Mitigation Options Chapter 8: Climate Policy in East Asia

Page 25: A Summary of Economics of Climate Change in East Asia

END OF THE PRESENTATION

TERIMAKASIH